Last post December 24, 2019 10:22 AM by debora. 1 repiles.
Dear All, I have recently joined a company. Here what I found is that the Basic of all employee is very less, It's not even 10% of the CTC. Can any body help me out about the details how the pay structure should be. As per my knowledge the basic pay should be 50% of the CTC. Is this correct? Can anybody provide me the link or book name which provides me the legal aspect of Basic Pay.
Thanks in advance
I just happen to see you posting. In your posting you have mentioned that "As per the supreme court ruling, even the salary shown as special allowance and food allowance will also attract PF as recently I had a discussion with Regional PF Commissioner"
Can you share the Super Court ruling on this and also throw more light on this ?
In that context the company may be looking from below mentioned points.
Keeping low Basic (but in concurrence to PF act & Minimum Wage Act) the company might be believing in max take home salary to employee with min ded in terms of PF as all the necessary deductions takes on the basis of Basic salary....
Other context / strategy of organisation (particularly in sales & mktng organisations) they will be they must keeping fixed pay min and variable pay max (which you have to validate thrgh the break up of your total CTC...
this is what i perceive ..